One Way to Increase Revenue: Upsell!
Unlike 50 pounds of dog kibble, pills and tablets are sold in one- or two-month quantities. Auto ship in this business is exact and profitable. The lion's share of the firm's customers are senior citizens and forgetful. The copy points are obvious:
- FEAR: Don't take a chance on inadvertently losing the benefits of these nutrients and getting sick as a result.
- GREED: Save 30% (or 40% or 50%) and at the same time be sure of enjoying continued good health.
- GUILT: Don't deprive your system of these valuable, doctor-approved nutrients and remedies.
- SALVATION: Testimonials here from happy old customers that credit these pills for making them feel 40 years younger.
An old business rule: 20 percent of your customers will account for 80 percent of your profits. My bet is that the 20 percent of customers on the auto ship plan are the most profitable.
I offered to work like the dickens on tests to convert all his customers to the automatic refill system. The client said that some tests were in the works.
Package Inserts and Package Insert Programs
One of the times a customer is in the mood to order something is when a package arrives filled with goodies from a store or cataloger and the family happily opens it.
Smart marketers always include another catalog and/or some special offers in a shipment of merchandise, and chances are they more than pay for themselves.
A number of catalogers offer package insert programs, whereby outside mailers (presumably not competitors) can include direct response offers in merchandise shipments from catalogers and retail stores. These are often worth testing.
Renewal at Birth
Another upsell technique is used in the magazine and newsletter subscription business.
A sample offer: Take 4 issues—FREE! Cancel any time, no risk, no obligation. If you decide to subscribe, a full year—48 additional issues—will be just $19, a 60% saving under the regular subscription rate and 80% less than what others pay at the newsstand.